Mobile advertising grows 49% – in-app formats dominate spending

Mobile advertising has become even more valuable during the first quarter of 2017, according to the latest Smaato Global Trends in Mobile Advertising report. Overall, the format grew 49% across the Smaato platform, driven by the APAC regions (139%). eCPMs also jumped in EMEA (28%) and the Americas (22%).

China led in terms of mobile ad spend growth, almost doubling its Q1 performance compared to 2016 (90%). That’s more than twice the rate of the second strongest performer Australia (37%).

But mobile no longer just dominates the web. Instead consumers are spending nearly 90% of their time within apps. That’s around two hours per day per consumer. And percentages aren’t all too different across regions.

Across the Smaato platform, in-app advertising spend was up 41% the year over, dominating a whopping 91% of all ad spending. That’s a 15-points lead over mobile web.

In addition, the total value of in-app advertising also rose this quarter as in-app eCPMs rose 54% between Q1 2016 to Q1 2017.

Among the markets with the highest in-app ad shares are the US, Australia and UK, all at 94%, followed by Canada (93%) and China (89%).

According to eMarketer, the share of in-app global mobile ad spend is expected to continue its growth streak by another 7% from 2017 to 2018.

On the Smaato platform, the music app category led in terms of spending (16%), whilst weather apps commanded the highest eCPMs at over 2.5x more than other categories.

Other findings from the report include mobile ad viewership peaking around 7pm to 10.30pm. Smaato dubs it a ‘mobile prime time’ effect which has important implications for advertisers: mobile ad views can be boosted if ads are scheduled for the right time.

Not surprisingly, ad schedules and campaigns should also factor in major events and seasons as eCPMs were up 25% during Super Bowl Sunday, and NBA Finals as well as Copa America helped boost sports app eCPMs by more than 40% in June.